Does anyone know if there is a way to hedge with the Oanda platform?I opened up a position in the opposite direction and my trade was cancelled out.:mad:
Of course it was. You offset it. Oanda treats “hedging” as it really is - an offset. They don’t take advantage of new trader’s ignorance like other platforms do. If you want to “hedge” they make you work for it by opening and using a sub-account.
thanks Rhody,I see where you are coming from.So this would work also on taking profits from a trade.downsizing your trade as it goes…but paying a spread for it also,I have this correct right?
yes, the sub account thing works fine,
I am still playing the game, and I need to learn how to make trades on longer time lines, the 10sec, 30sec and 1 and 5min chart trading I can make work, but I cannot sit with my nose on the screen the entire night,
frequently I want to make long trades as I see the trend, but then there is an opportunity for making some pips since no trend is entirely up or down,
so today I have opened several subaccounts, 1 day account for long trades, 1 hour for shorter time lines, and 15 minute for my really short ones,
you can load your play money into the subaccount and away you go
Yes and no. While it’s true that shorting in subaccount X to offset a long in subaccount Y will provide the net, Oanda does treat them as seperate accounts. That means if the market goes way against your Y long you will get a margin call despite your short in X.
But there is absolutely no valid reason for using a “hedge” like that to act as protection against further losses, to take partial profits, or anything like that. Do the math and you’ll see that you are always better off just closing out the trade (or fraction of).
Rhodytrader,
I may not have been clear with my post.What I ment to say was I can take profit from my trade,sayings I do all this from my main account.
well I was playing around a bit this morning, and yes it is hard to set sl/tp against each other on different time charts, the sl/tp will be the same on the same pairs if the trades are made within a minute or so of each other, I had hoped that the sl/tp would adjust to time chart, I do not know why I thought that it really does not make sense now that I really think about it,
but I have still set up separate charts, 1day,3hr… and am going thru each chart making trades with the 5 pairs I am trading, trying to see where I have the most success, and possibly WHY,
I will leave it to the pros to advise you, I was wrong and thank you rhodytrader for your note,
bye
Hedging is a very valid strategy if used correctly.To protect from margin calls, you need to transfer funds from one account to the other on the platform, it only takes a few seconds.
This may be because as hedging practices are under examination as currency volatility threatens profitability. However, those that were bullish on the currency’s prospects and locked in hedges at higher rates are now struggling. I think people that did 100 per cent hedge have to look deeply at their strategy.
…that hedging is a valid strategy as is scalping as is swing trading as is closing your eyes and mashing the buy it now button…oops…I meant buy/sell option on your particular software/platform. Now where’s that darn profit button, it always seems to elude me in the most desirable of times 